HMRC is scrutinising residential property values in inheritance tax cases more closely, with new research pointing to a marked rise in referrals to the Valuation Office Agency.
VOA referrals rise as HMRC tightens probate scrutiny
Research highlighted this week found referrals to the VOA in inheritance tax cases rose from 11,845 to 14,631 in the year to 30 September 2025 – a 23.5 percent increase. The VOA provides independent property valuations that HMRC can use when checking whether an estate has been valued correctly for tax purposes.
For landlords and property investors, that matters because residential assets often make up a large share of family wealth. Where rental property sits inside an estate, the room for a casual estimate is shrinking.
HMRC’s inheritance tax liabilities statistics show residential property accounted for 46.8 percent, or £29.5 billion, of the net value of estates in 2022-23. With frozen thresholds and higher property values pulling more estates into scope, valuation disputes are likely to become more common rather than less.
Property-rich estates face more pressure
This follows Landlord Knowledge’s report on inheritance tax receipts reaching £8.5 billion. The latest rise in VOA referrals suggests HMRC is not just collecting more tax from a wider group of estates – it is also testing valuations more aggressively.
That is especially relevant for landlords with older, mortgage-light portfolios. A long-held rental property can look straightforward on paper, but questions around condition, tenancy status, comparable sales and market timing can all affect probate value. If HMRC challenges the number, delays and extra costs can follow.
In practice, the message is that informal estate-agent estimates may no longer be enough for higher-value or more complex cases. A proper RICS-backed valuation costs more upfront, but it may be cheaper than arguing with HMRC later.
Frozen thresholds keep the tax net wide
The nil-rate band has been frozen at £325,000 since 2009, which means more estates are being pushed into inheritance tax through asset inflation alone. Combined with Landlord Knowledge’s earlier coverage of frozen inheritance tax thresholds, the direction of travel is hard to miss.
For landlords, the issue is no longer just how much an estate may owe. It is how defensible the property valuation will be when HMRC looks at it. That makes record-keeping, comparable evidence and early professional advice more valuable than they were even a year ago.
What this means for landlords
- If you hold property for the long term: review whether your estate planning assumes values that would stand up to HMRC challenge.
- If executors may inherit rental property: leave clear records on tenancy status, condition and comparable evidence.
- Watch for: more HMRC focus on property-heavy estates while thresholds stay frozen.
- Bottom line: the tax risk now sits not only in the bill itself, but in how the property is valued.
Editor’s view
Landlords sometimes treat inheritance tax as a problem for later. That looks less sensible when HMRC is paying closer attention to the numbers going onto probate forms.
Author: Editorial Team – UK landlord & buy-to-let news, policy, and finance
Published: 27 April 2026
Sources: HMRC inheritance tax statistics, Valuation Office Agency referral data, TWM Solicitors research
Related reading: Inheritance tax receipts hit £8.5bn as property estates stay in HMRC net
